Alok Industries was listed on the NSE on February 19, 2020. In the last five years, the company has given a massive return of more than 280% to its investors. Will Alok Industries continue to provide such great returns in the future as well? Let’s explore Alok Industries’ growth potential and Alok Industries share price target from 2025 to 2050 in this article.
About Alok Industries
Alok Industries is a textile manufacturing company in India, which was founded in 1986. It manufactures cotton and polyester fabrics, garments, home textiles, and yarn. The company has manufacturing units across India and exports to a number of countries. Over the years, it has grown to become a major player in the textile industry. However, due to financial difficulties, it received debt restructuring and was eventually acquired by Reliance Industries and JM Financial in 2020. Alok Industries continues to operate today, with a focus on growing its business and expanding its reach.
Alok Industries Business Model
- Textile manufacturing: Alok Industries manufactures fabrics, garments, and other textile products. They sell these to brands, retailers, and other companies.
- Retail Sales: Alok Industries sells products directly to customers in stores and online.
- Wholesale Distribution: Alok Industries supply textiles in bulk to wholesalers and distributors, profiting from large-scale sales.
- Contract Manufacturing: Alok Industries manufactures textiles for other companies and brands, generating revenue through production contracts.
- Home Textiles: Alok Industries sells home textiles such as bedsheets, curtains, and towels to homeowners.
- Polyester Business: Alok Industries manufactures polyester yarn and fibres and sells them to other textile companies.
- Technical Textiles: Alok Industries manufactures specialized textiles for industries such as healthcare, construction, and automobiles, generating revenue from industrial customers.
Alok Industries Fundamental Analysis
| Stock Name | Alok Industries Ltd. |
|---|---|
| NSE Symbol | ALOKINDS |
| Market Cap | ₹ 8073 Cr. |
| 52W High | ₹ 30.0 |
| 52W Low | ₹ 14.5 |
| Stock P/E | – |
| Book Value | ₹ -40.8 |
| Dividend Yield | 0.00 % |
| ROCE | -4.40 % |
| ROE | – |
| Face Value | ₹ 1.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 75.00% | 75.00% | 75.00% |
| FIIs | 2.07% | 2.34% | 2.38% |
| DIIs | 0.35% | 0.37% | 0.41% |
| Public | 22.57% | 22.29% | 22.21% |
| No. of Shareholders | 5,32,284 | 10,28,736 | 10,51,299 |
Key Factors Driving Alok Industries Future Growth
- Strong Parent Support: Alok Industries is owned by Reliance Industries, which provides financial strength and stability as it expands operations.
- Growing Textile Demand: Alok Industries benefits from rising domestic and international demand for fabrics, garments, and home textiles.
- Expansion in Domestic and Global Markets: Alok Industries is expanding its presence in India and other countries, which will increase revenue.
- Government Support for the Textile Sector: Policies such as Production Linked Incentives (PLI) and other government initiatives benefit textile businesses, including Alok Industries.
- Focus on Cost Efficiency: Alok Industries is working to cut costs and improve productivity, which can boost profits.
- Strong Manufacturing Capacity: Alok Industries’ large-scale production facilities allow it to meet high demand while also benefiting from bulk production.
- Product Diversification: Alok Industries is expanding its product offerings to include new fabric types and value-added textile products that will appeal to more customers.
- Technological Upgrades: Investing in modern machinery and automation can help Alok Industries improve quality and efficiency, thereby increasing its competitiveness.
Pros of Alok Industries
- High Promoter Holding: Alok Industries has a strong promoter holding of 75.0%, indicating the promoters’ high confidence in the company’s future growth and stability.
Cons of Alok Industries
- Decrease in Institutional Confidence: DIIs have reduced their holding to 0.41% in December 2024 from 0.42% in September 2024 while FIIs have reduced their holding to 2.38% in December 2024 from 2.44% in September 2024, indicating a decline in institutional confidence in the company’s future growth prospects.
- Decreasing Sales – Alok Industries sales have been decreasing at a CAGR of -13% over the last ten Years.
- Low Return on Capital Employed (ROCE): Alok Industries 5-year average ROCE is -2.48%, indicating inefficient use of capital to generate profits.
- Low Interest Coverage Ratio: The interest coverage ratio of Alok Industries is -0.52, which shows that the company is struggling to pay interest.
| Years | Target Price |
|---|---|
| Alok Industries Share Price Target 2025 | ₹20 to ₹25 |
| Alok Industries Share Price Target 2026 | ₹20 to ₹26 |
| Alok Industries Share Price Target 2027 | ₹30 to ₹30 |
| Alok Industries Share Price Target 2028 | ₹32 to ₹35 |
| Alok Industries Share Price Target 2029 | ₹35 to ₹50 |
| Alok Industries Share Price Target 2030 | ₹40 to ₹60 |
| Alok Industries Share Price Target 2035 | ₹80 to ₹180 |
| Alok Industries Share Price Target 2040 | ₹160 to ₹540 |
| Alok Industries Share Price Target 2050 | ₹640 to ₹3210 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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